In Picking Funds, R.I.P. Can Be as Crucial as P/E

Smart mutual-fund investors look to a manager's track record, investment strategy, and the attractiveness of the fund's portfolio before buying. Here's something else that they should think about: death. No, not their own or the fund manager's, but the surprisingly high death rate of mutual funds themselves.

Funds kick the bucket due to poor performance, investor uninterest, or both. If you think it's a marginal trend, think again. Fund-watcher Morningstar tracks 7,461 mutual funds, and its count since 1994 of obsolete...